Record year for investment volume

The latest edition of our UK Investment Transactions report reveals that 2015 was a record year for investment volume, with £66.3bn of assets changing hands. Following a subdued Q3, Q4 volume was £15.7bn, up 23% quarter-on-quarter.

The Q4 2015 edition of our UKIT report also reveals that:

Investment in alternative assets was instrumental to 2015’s record. While volume for the three core sectors was 5% short of its 2006 peak, investment in alternatives was three times the ten-year average.

Offices volume highest since 2007. South East offices had a record year with 2015 volume totalling £3.4bn, while volume for Rest of UK offices was 30% above its annual average.

Portfolio deals were a prominent feature of 2015, accounting for 30% of total volume. This largely comprised alternative assets acquired by North American buyers.

Overseas buyers made up a record 50% of total volume in 2015. While overseas investment in London was down 10% on 2014, investment in regional assets and portfolios was up 29% and 33% respectively.

UK institutions were marginal net sellers for the second quarter in succession. Except for industrial assets, institutions were net sellers of all main sectors during the second half of the year.

Q4’s All Property transaction yield was 5.62%, edging in by three basis points during the quarter. Offices saw the strongest inward movement to stand at an historic low of 4.60%, driven by Central London offices.